VICI Commits $1.5B in High-Yield Debt for Luxury Project
VICI Properties (NYSE: VICI) finalized a $1.5 billion mezzanine loan on March 24, 2026, to finance the development of One Beverly Hills, a 17.5-acre luxury mixed-use project. The deal deepens the REIT's involvement, representing a $1.05 billion incremental commitment on top of its existing $450 million investment. This financing is part of a larger $4.3 billion capital stack, positioning VICI's loan behind a $2.8 billion senior loan led by J.P. Morgan. The project, developed by Cain International and Eldridge Industries, is one of the largest real estate construction financing arrangements in the last decade and is anchored by an Aman hotel and residences.
REIT Pivots From Casinos to Experiential Development Risk
This transaction marks a significant strategic evolution for VICI, which owns a vast portfolio of gaming properties like Caesars Palace and The Venetian Resort Las Vegas under a triple-net lease model. By providing development financing, VICI is moving into a higher-risk segment of the capital stack compared to its stable, long-term rental income streams. The mezzanine position offers potentially higher returns to compensate for its subordinate status to senior debt. VICI plans to fund the commitment using cash on hand, deploying the capital gradually over the loan's four-year term, which mitigates immediate balance sheet impact. The first phase of the project, which began construction in 2024, is scheduled for delivery in 2028.
New Venture Targets Future Experiential Real Estate Deals
The financing for One Beverly Hills also formalizes a long-term strategic relationship between VICI, Cain, and Eldridge Industries. The partners have established an "Experiential Cross Capital Venture" (ECCV), a non-binding agreement to collaboratively identify and fund future experiential real estate investments. This structure creates a pipeline for VICI to recycle capital from the One Beverly Hills loan upon its maturity into new opportunities, cementing its expansion into a broader set of experiential assets beyond gaming. Jonathan Goldstein, CEO of Cain, noted the deal reflects strong market belief in the project's vision.
This transaction is indicative of the confidence the market has in our vision for One Beverly Hills.
— Jonathan Goldstein, Co-Founder and CEO of Cain
Edgen Stock·Mar 24 2026, 19:13
